Exam 5: Creating Worldwide Innovation and Learning: Exploiting Cross-Border Knowledge Management

An effective way to exploit the knowledge within an organization with a high complexity of market knowledge and a high complexity of technological knowledge is:

Despite the differences that exist among transnational organizations,there is one optimal approach to managing innovation in these firms.

Worldwide Consulting Limited is an Italian-based service company with activities in 23 countries.The company operates by embedding a large number of expatriates in foreign subsidiaries,even though the expatriates are not always familiar with the host country to which they are assigned.What is the most important benefit Worldwide Consulting is most likely to achieve through this practice?

Which of the following does not enhance the efficiency of a local-for-local innovation process?

Local-for-Local innovative processes can be enhanced through integrating subsidiary functions across different levels.At which level are the control and conflict resolution tasks best concentrated?

Locally leveraged innovation involves ensuring that the special resources and capabilities of each national subsidiary are available only to that local entity.

Traditionally,MNEs developed innovation processes that were either very centralized (resulting in center-for-global innovation),or very decentralized (resulting in local-for-local innovation.)More recently,companies have developed two transnational innovation models.Describe the new models and the advantages they have over the older approaches to innovation.

To make central innovation effective,the purpose of building multiple linkages between headquarters and subsidiaries is to exercise better control over those operations.

The most effective way to coordinate knowledge flows in a transnational organization is through the process of formalization.

What are the challenges associated with managing a center-for-global innovation process and what are some of the measures that can be employed to ensure that the process is efficient?

In transnational companies like Unilever,products,functions,and geographic regions are coordinated in a differentiated manner,accounting for the respective demands for integration and responsiveness.

Emerging strategic demands make organizational models based on interdependence the most appropriate form for headquarter-subsidiary relationships.

TechInnovation is a large MNE operating in an environment characterized by rapid changes.During the past 50 years,its subsidiaries have operated independently.Which of the following actions will be least helpful to increase the interdependence across its widely dispersed national organizations?

An MNE's ability to develop and slowly diffuse innovations around the world is vital,and in this challenge overseas operations need to take on important new responsibilities.

Vito is a consultant advising a major corporation.His client has requested assistance with improving the effectiveness of its innovation process.Vito noticed that the client's subsidiaries enjoy a high degree of independence.Vito suspects that there may be significant risks associated with this degree of independence.What are these risks and what are some alternatives that can be employed to mitigate these risks?